This Indicator Shows the Price of Silver Should Start Rallying Soon
Peter KrauthWhile the price of silver continues to languish, an excellent contrarian signal has emerged.
After silver's recent foray into correction territory, the metal remains there after bouncing back only slightly.
Meanwhile, silver futures positions held are rapidly approaching levels that in the past have marked the start of strong rallies higher.
This week, traders are awaiting the results of the latest FOMC meeting. No rate hikes are expected at this latest sit-down, but a surprise hike would likely weigh pretty heavily on silver prices.
Observers will closely dissect the Fed's language for clues as to whether any changes are expected to the forecasted two more rate hikes this year.
As well, many will look for any influence Trump's criticism – that Fed rate hikes are hurting the economy – could have on the Fed's outlook.
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So the next few days just might mark an inflection point for the future of silver prices.
Before I show you my latest silver price prediction, here's how prices are trending this week…
What's Moving the Price of Silver This Week
Silver's trading has been pretty uneventful since last Tuesday, July 24.
The metal remained in a quiet trading range between $15.30 and $15.60 as the U.S. dollar index (DXY) was equally limited. For its part, the DXY bounced between 94.80 last Tuesday, backed off to a low of 94.10 late Wednesday, then climbed to peak again at 94.88 early on Friday.
Here's a look at the DXY's recent action:
By Monday afternoon, the DXY had sold off to 94.35, but that was little help for silver prices.
By then silver was right in the middle of its past week's trading range, changing hands at $15.46.
Now here's where I see the price of silver heading from here…